Australian Government Rebate on private health insurance

The Australian Government provides an income tested rebate to help people meet the cost of private health insurance.

A person may claim the private health insurance rebate if they:

are eligible for Medicare;

have a complying health insurance product (CHIP) that provides hospital treatment, general treatment (also known as ancillary or extras) cover or both; and

have an income for Medicare levy surcharge (MLS) purposes below Tier 3 shown in the table below.

As part of the 2014-15 Budget, the Government announced that from 1 July 2015 the income thresholds used to determine the Australian Government rebate on private health insurance (the Rebate) and MLS would be kept at the 2014-15 rates for three years. The necessary legislation to make these changes came into effect on 26 November 2014.

From 1 July 2015 to 1 July 2018 the income thresholds used to determine a person’s eligibility for the Rebate will be based on the following table:

Base Tier

Tier 1

Tier 2

Tier 3

Singles

$90,000 or less

$90,001 - 105,000

$105,001 - 140,000

$140,001 +

Families

$180,000 or less

$180,001 - 210,000

$210,001 - 280,000

$280,001 +

The Rebate amounts will continue to be adjusted annually on 1 April based on the Rebate Adjustment Factor.

The Private Health Insurance Rebate Percentages are as follows:

Private Health Insurance Rebate effective from 1 July 20914 to 31 March 2015

Base Tier

Tier 1

Tier 2

Tier 3

Under 65

29.040%

19.360%

9.680%

0%

65 - 69

33.880%

24.200%

14.520%

0%

70+

38.720%

29.040%

19.360%

0%

Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first. Rebate levels are adjusted annually on 1 April based on the Rebate Adjustment Factor.

The tiers are based on your income for Medicare levy surcharge purposes.